BILL NUMBER: SB 565	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   AUGUST 24, 1999
	AMENDED IN SENATE   JUNE 1, 1999
	AMENDED IN SENATE   APRIL 26, 1999

INTRODUCED BY   Senator Costa

                        FEBRUARY 19, 1999

   An act to add and repeal Section 14669.7 of the Government Code,
relating to state property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 565, as amended, Costa.  State facilities:  Department of
Transportation:  study.
   Existing law generally authorizes the Director of General Services
to hire, lease, lease-purchase, or lease with the option to purchase
any real or personal property for the use of any state agency, if
the director deems the hiring or leasing is in the best interest of
the state.
   This bill would require the director to undertake a study
regarding the purchase, exchange, or acquisition of real property and
the construction of facilities in the County of Fresno for use by
the Department of Transportation and other state agencies.  The bill
would require the director to report to the Legislature on or before
December 31, 2000.
   These provisions would remain in effect only until January 1,
2001, and as of that date would be repealed, unless a later enacted
statute, that is enacted before January 1, 2001, deletes or extends
that date.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14669.7 is added to the Government Code, to
read:
   14669.7.  (a) The director shall study the purchase, exchange, or
acquisition of real property and the construction of facilities in
the County of Fresno, for use by the Department of Transportation and
other state agencies.   The department shall study the
options of a lease-purchase, or a lease with an option to purchase
the   The study shall include an evaluation of options
to finance the  facilities.  The department shall consider the
placement of the  facility   facilities  on
a site that permits future expansion of the  facility
  facilities  described by this section, if
evaluations of future workload indicates that future expansion of the
 facility   facilities  may be warranted.

   (b) The study shall assume that the net present value of the cost
to acquire and operate the facilities described in this section may
not exceed the net present value of the cost to lease and operate an
equivalent amount of comparable office space over the same time
period.  The department shall perform this analysis and shall obtain
interest rates, discount rates, and consumer price index figures from
the Treasurer.  For purposes of this analysis, the department shall
compare the cost of acquiring and operating an equivalent amount of
comparable office space that will no longer need to be leased because
the agencies will no longer occupy currently leased facilities when
they occupy the proposed facilities.
   (c) Notwithstanding Section 7550.5 of the Government Code, the
director shall submit the study described in this section to the
Legislature on or before December 31, 2000.
  (d) This section shall remain in effect only until January 1, 2001,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2001, deletes or extends that date.